Unit 9: Entrepreneurship & Small Business Management - ICON

This report provides a comprehensive analysis of entrepreneurship and small business management, covering various aspects such as different types of entrepreneurial ventures (large, social, scalable start-ups, and small-business), typologies of entrepreneurship (serial, lifestyle, female, and male), and the similarities and differences between these ventures. It also examines the role of entrepreneurship in the public and corporate sectors, the impact of small and micro businesses on the economy, and the characteristics and motivational drivers of successful entrepreneurs. Furthermore, the report discusses how entrepreneurs' experiences and backgrounds can either foster or hinder entrepreneurship, and it establishes a link between entrepreneurial characteristics and success. The analysis highlights the critical factors contributing to the growth and development of entrepreneurial ventures and the importance of SMEs in driving economic growth.

Entrepreneurship and
small business
management

Table of Contents
Entrepreneurship and small business management ........................................................................1
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
1) Different types of Entrepreneurial ventures ...........................................................................3
2) Typology of Entrepreneurship................................................................................................4
3) Explore Similarities and Differences between entrepreneurial ventures................................5
4) Understanding of Entrepreneurship in public and corporate sector.......................................8
Examination of scope, development and growth of ventures of entrepreneurial in a critical
manner.........................................................................................................................................8
Lo 2..................................................................................................................................................8
1) Impact of both such as small and micro business on economy .............................................8
2) Importance small business and start ups in growth of social economy...............................11
3) Different small, medium and large enterprises contribute to the economy..........................13
4) Critical examination of small businesses in impacting different levels of economy............14
Lo3.................................................................................................................................................15
1) Characteristic Skills and Traits of successful entrepreneurs...............................................15
2) Motivational drivers of successful entrepreneurs................................................................15
Lo 4................................................................................................................................................16
1) Experience & background of entrepreneurs which can create hinder and foster
entrepreneurship........................................................................................................................16
2) Link between entrepreneurial characteristics ......................................................................18
Conclusion ....................................................................................................................................18
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurship is defined as the procedure of designing, launching and running a new
business that of often initially a small organisation. In addition to this, entrepreneurship is also
refers as a willingness to develop, succeed and manage a business venture with considering the
objective to gain higher growth and profit. Entrepreneurs are performing an essential role in
economic progress of the country. In economic aspect, entrepreneurship combines through
natural aspects involving resources, labour, capital and land that are effective in reducing the
profitability. This report contains the study about entrepreneurship and small business
management, therefore this involves, many types of entrepreneurship and other several small
scale business as well. There is many kinds of similarities which have to be seen between other
investors and which is also being evaluated here. Also, there is direct contribution from both
activities which have to be involved related to micro and mother small scale business ventures.
The main issues due to which importance of new start-ups are required is also mentioned below
in the file. All this mentioned above is described correctly in this file.
LO1
1) Different types of Entrepreneurial ventures
Entrepreneurship: It can be regarded is a process which is developed for a valuable idea in the
process of innovation which is helpful in growth to earn higher amount of profits of venture
(Altman, Sabato, and Wilson, 2010.). It is a combination of resources, capital, land and labour
which is used to generate maximum outcomes in a business. Entrepreneur is willing to take
higher amount of risk, by investigating of market, implementation of business plans is done
which is based on a innovative idea.
Different entrepreneurial ventures: In the external environment some different types of
enterprises are there which is operated by a single owner who is entrepreneur. They are willing
to take high amount of risk so that objectives can be achieved. Every venture is different from
another and this has to be different only then it will be able to have a advantage of
differentiation. There are four ventures which are mentioned below:
Large entrepreneurship: It is those types of entrepreneurship in which there are large
funds involved and there is huge risk which is being taken by the entrepreneur. In order to satisfy

increasing demands of customers and have a larger share in market iot has become very
necessary to have advanced technology, legislations to be followed and many other obligations
which will be helpful for the organisation to have sustainability in market.
Social entrepreneurship: These are those types of ventures who ate willingly taking
efforts in improving quality of products and services which they are offering (Audretsch, and
Link, 2012). Major motive of such type of ventures is not to earn maximum profits but to
provide society and its people help and benefits. They are functioning for fulfilment of their
objectives which are not to earn profits.
Scalable starts-ups entrepreneurship: They have enough potential that they can be one
of successful organisations. Major objective of such organisation is to bring a change in the way
operations are done in way which has maximum risk has profit percentage is also very high.
They require higher amount of funds which can help them in more investment and which leads to
more profits at same time. They always posses need for large amounts of fund for expansion.
Small-business entrepreneurship: This is a enterprise has various functions which have
annual turnover around 6.5 million. They need low capital and have less risk to operate their
business. There are basically small businesses who are consultants, electricians, plumbers,
agents & many other.
Entrepreneurship in Public sector: This is referred to as the innovative public policy
which will help in generation of economic prosperity by transformation of a economic
environment. This is helping in engagement of innovation & creative activities in the situations
of uncertainty. This is a type of public policy initiative which is generating prosperity by
transforming of ideas and help in usage of available resource with a country by the government
in a most effective manner.
2) Typology of Entrepreneurship
Typologies of entrepreneurship: In market, there are many number of enterprisers which
are available and they are rendering their services or products help in overall development of
society. Their basic motive is to fulfilment of basic needs, desires of customers to participate in
overall welfare of country. Some basic typologies are explained below:

Serial entrepreneur: These entrepreneurs who establish various ventures & when it
become successful they open another venture (Barringer, 2012). Major objective of the venture
is not to earn profits.
Lifestyle venture: It refers to a firm which is focussing on capturing large share of market
and utilisation of resources in a optimum manner. It leads to more flexibility in overall operation
of business.
Female entrepreneur: This is a business which is operated by a female entrepreneur and
stared and all its functions are carried on by a female only.
Male entrepreneur: This is also a typology of enterprise in which the whole venture is
dependent on a male entrepreneur. The venture is started and all its functions are taken care by a
male owner only. These entrepreneurs are mainly depend on men's capability and power.
3) Explore Similarities and Differences between entrepreneurial ventures
It has been said that there are different type of entrepreneurial venture which plays very
essential role in the overall development of the economic system of the country. These ventures
have some similarities along with differences which are going to be discussed as follows:
Lifestyle ventures with other business entities Serial entrepreneurs similarities with other
business
 These are the business ventures which
gives flexibility in attire, places, hours
and many more.
 It is the type of venture which mainly
does not have any kind of purpose and
motive in order to attain any kind of
benefits and advantages for a limited
period of time (Baum, Frese, and
Baron, Eds., 2014).
 In context of business functions and
operations, they highly requires more
competent, skilled and knowledgable
individuals with the assistance of which
 It refers to the kind of business ventures
highly focuses on keeping the position
as well as goodwill of the company
high at the marketplace. This will assist
in increasing the overall profitability of
the organisation at the competitive
marketplace.
 It refers to type of business organisation
which are of small scale and provide
employment opportunities to ample
number of individuals.
 Both these business ventures have same
goals and objectives and for this they

profit margin of the organisation will
be raised effectively.
 This majorly focuses on gaining large
market share and effectively using
available resources, so that
organisational goals and objectives will
be achieved effectively and within
given time frame.
need to hire skilled and capable staff
members.
 Apart from this, they highly focuses on
grabbing large number of market share
at the competitive place.
Difference Difference
 They do not communicate each and
every data as well as information to
their financial informations.
 It has been said that these types of
business ventures do not have any type
of strategies in order to perform their
business functions at the competitive
marketplace (Bosma, and Levie,
2010).
 Generally these types of business
ventures start their business operations
with their own earnings.
 They communicate and transmit each
and every information about internal as
well as external situations of the
organisation to their financial capitalist
on a regular basis.
 They do have specific place to launch
and perform their business operations in
an accurate, effective as well as
efficient way.
 They do not emphasise on earning
money in order to live their life or for
their family. These types of individuals
have completely different type of
attitude and behaviour of lifestyle
ventures, they generally establish their
business operations by selling goods to
other business entities.
Female venture similarities with business Male ventures similarities with other business
 Main aim as well as aim of female  It has been said that both the female as

enterprise is to raise their name and
fame at the marketplace by increasing
market share.
 They are highly focused about their
performance and work whether it is
associated with their family and office.
 They have the power or ability to
influence ample number of users
towards their work by innovating new
ideas and techniques.
well as male entrepreneurs have similar
purpose which is to raise their overall
market share & attain huge number of
benefits.
 Along with this, they do have the
ability to grab attention of customers
towards their goods and services at the
competitive marketplace.
 They are highly focused when they
perform their business functions to
accomplish their goals and objectives.
Difference Difference
 Female entrepreneur are the one who
innovate, initiate and adopt business
functions in an effective manner.
 They take time to make any kind of
decision so that maximum success will
be attained at the given time period
(Bruton, Ahlstrom, and Li 2010).
 Female entrepreneurs are the one who
have effective team management skills
along with attractive communication
ability.
 It has been said that motivation as well
as confidence level are more high as
compared to other female
entrepreneurs.
 They often make fast or quick decisions
so that they can attain their long terms
goals as well as objectives.
 As compared to female entrepreneurs it
has been seen that male entrepreneurs
have less communication skill.

4) Understanding of Entrepreneurship in public and corporate sector
Entrepreneurial ventures can be found in different types in a business environment. These
are categorised into Public and Corporate Sector which are defined on the basis of their
objectives (Dacin, Dacin, and Matear, 2010). The limit of investment is also limited depending
on the scope of business operations. It is important to make a differentiation among these
enterprises in order to have clear understanding of their activities and purpose. The main motive
of such entities is manufacture goods and services for achieving the goals of increasing profit
and satisfying customers. There are two kinds of entrepreneurial ventures such as Business
Entrepreneurship which is directed towards making profit and the other being Social
Entrepreneurship which is concerned for making the lives of people better.
Examination of scope, development and growth of ventures of entrepreneurial in a critical
manner
There are different factors which are contributing in the growth of entrepreneurial
ventures. Therefore, it becomes imperative to for gaining knowledge about scope, growth and
development. There are many sectors which are growing extremely with the time. The
underlying reasons are that business focus on people are changing, instead of making changes in
business enterprise. For this purpose, many new innovations are brought which is a constant
practice. The rate of growth and development is increasing with the passing day due to higher
investment are being made in new business venture. Therefore, SMEs are the reason for growth
and development of the overall economy.
Lo 2
1) Impact of both such as small and micro business on economy
There are basically three types of business which are performing and functioning in UK.
THese include micro, small and large enterprises. These business have huge impact on economy
and and society. These organisations have to assist in developing the betterment of the society.
Government plays a very important role in determining the best manner in which these impacts
can be overcome after the scenario of Brexit. This will render the maximum chances of removal
of unemployment, chances of employment, and effective alteration of infrastructure and
maximising cash inflow of the economy. So in order to have access and growth of the company

then government of UK is preparing and implementing strategies and policies that are planned in
an effective manner (Delgado, Porter, and Stern, 2010)(Defourny, and Nyssens, 2010).
Different business such as Micro, small and large are determined as below:
Micro: These are very small in case of size and when the number of employees are less
the sales is approximately £ 2 million. The different activities and functions of these businesses
are very small. In the marketplace, they are launching new ideas and plans that will help in
maximising profits and money.
Small: The number of employees are very less as compared to the medium sized
enterprise. The sales of such businesses is approximately £ 6.6 million. Such organisation have
different activities and functions and these are largest when compared to the micro entity. The
main objective of such business is to maximise the revenue generated by the company.
Medium: In the medium sized organisations, the number of employees are less than 250
and this has an annual sales of approximately £ 25.9 million. Such organisations are having
functions and business activities bigger than the micro and small firms. The main aim of these
business organisations is to attain organisational goals and objectives in less time.
Characteristic of Partnership, sole proprietorship and private organisation:
Private firm: These enterprises have various functions and activities and these are controlled and
managed by non government business and these are monitored by individuals. The government
of UK is not having any right to control the private business. They cannot manage and control
any of the business activity of these organisations. The main objective of these enterprises is that
and different functions and activities of company is managed and monitored by individual and
non-governmental business. The government of UK has to manage the business activities in an
effective manner. The characteristics of these are listed below -
 All the business activities are controlled and managed by non-governmental company
and individual people. The main objective of the companies is to maximise sales and revenue of the company
Sole proprietorship: The various business organisations consists of various functions and
activities that are monitored by individual property. They are having power for controlling and
managing entire operations of the firm and having sole obligation over different business losses
and risk (Harris, and Patten, 2014). The different characteristics of such business organisation is
listed below -

 Monitored and launched by an individual. Business proprietor have unlimited liability or duty.
Partnership: It is a business organisation that includes more than two parties. They are having
some kind of ability and power in which they have to it is attained at long term objectives and
goals. They are responsible for providing organisational goals within time. The major
characteristic are determined as below:
 Having equal loss and profit sharing ratio. Entire partners are having unlimited obligation or liability.
There are mainly four areas of the economy that the effect of SME's can be determined are as
follow:
Illustration 1: Macro and Small business employment
(Source: Effects on different location, 2015)

International and National Area: Small medium enterprises have great impact on the
national area. This helps in creation of economic growth. This is done by maintaining business
functions of the company. By the huge capital, this will be created in development of economy.
Local Area: In this type of small & medium size organisations, there are more effects. The main
responsibility of these organisations is to give various opportunities for people to get jobs. This
helps in building economic growth.
Regional Area: SME's have huge impact on the regional area. According to this, there
are different benefits and problems by the manufacturing of goods and products of the company.
This helps in delivering quality products to people.
2) Importance small business and start ups in growth of social economy
Brexit- It is explained as withdrawal of United Kingdom from European Union. The withdrawal
is advocated through Eurosceptic and also opposed through pro- Europeanist of whom span
political spectrum ( Neck, and Greene, 2011). Under this, various negative or adverse impacts
are observes through the legal authority on development as well as growth of an economy. It
would reduce the income level of UK people. This would occur more trade barriers which are
exist after leaving the United Kingdom country. There are various sources where the authority
yield income such as diminution in the export from European Union countries.
Difference among Start-up's and small business
Small-business Start-up's
 These are kind of business with an
ambitious strategy that exists.
 Compared to the start-up business, they
required the more capital, but they set
up their functions as well as activities
as a small size firms.
 The small size businesses mainly
provide the traditions products to its
 They are developing by innovative
through or an idea.
 This creates the new opinions or idea
and having the large market size.
 The start- ups having the scalable
business model.
 These kinds of businesses have the
innovative ideas and also tries to

consumers. provide better services to consumers.